The most vulnerable are hit hardest by the pandemic under the Hong Kong Mandatory Provident Fund scheme’s offsetting mechanism, underscoring why it should be removed.
Hong Kong’s mandatory provident fund trustees are facing a backlash for receiving high fee incomes despite offering poor returns and could see pressure to allow withdrawals.
Pension fund investors are in for a shock, with global equity market falls reducing their assets. There are a few ways they can react to minimise falls and maximise returns.
The Hong Kong government has set a major challenge for fund administrators, trustees and fintech firms to develop a much cheaper and easier platform for the territory's pension savers.
Existing dominant providers will have to pitch for the new eMPF system, while new players will have the opportunity to compete
The government needs to raise investor awareness about saving for retirement while rationalising the mandatory provident fund scheme, say industry experts.